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Thursday, May 29, 2014

What is Blue Chip ?
Blue Chip companies are financially sound companies that can withstand the downturn on the market.
They say that the term was derived on casino blue chip which possess the highest value

GDP of the Philippines on first quarter of 2014 is just 5.8%. However, the expectation for the GDP is greater than 6%. (concensus is 6.4%).

What's the effect on PSE market of this lower than expected GDP?
As you may expect, there was sell-off in the market. PSEi dropped 1.64% in just one day, May 29, 2014

Here are the declines of selected stocks: BLOOM dropped5.01%, JGS dropped by 4.99%,
ALI dropped by 4.24%, DMC dropped by 3.46% and MBT dropped by 2.96%

Note that these are not small companies. Most, if not all, are Blue Chip Companies.
The next time that there are releases for GDP numbers, expect movements like these.

It's all about expectation
Note: There are instances that even if the numbers released by the government are low but they beat the expectation of the market, the stock market goes up. On the other hand, even if the numbers are high (ex.GDP) but it didn't meet the expectation of the investors, there is a strong possibility that the market will decline.

Wednesday, May 28, 2014

Finally, there was two consecutive green days for LTG. This May 29, LTG reclaimed 14.86 prive level after rising by 3.77%If you think about it 3.77% in one day is a lot more better than a 0.5% interest rate per annum in peso deposits of most banks. 3.77% is a long way better also than gains on Time deposit rates which is currently around 1.125%.
In other words, it's possible to gain more earnings on stock trading compared to bank deposit and time deposit rates.

Tuesday, May 27, 2014

Is it too early to say that LTG share price is rising again? Just today, May 28, 2014, LTG rose up by 1.85%. Recall that for several days in the past, LTG is suffering price declines.

Now the question is .. Is this a real bounce or a fake bounce? Will the price continue to increase?

The current price is near the lowest points of the previous months graph. Is this what they call support?

I have no proof at hand but my speculation points that the price will increase again. This is just a guess.!

By the way, there's a decrease in Double Dragon price today. After hitting the 10 peso mark, DD is back to 9.70. This corresponds to 3% decrease. If I'm a holder, I will be more worried whether to buy or hold my DD stocks.

Other noticeable gainers for today are Puregold (PGOLD) and Emperador Inc. (EMP).
Is this what they call technical rebound as both stocks were in consecutively red last week?

Monday, May 26, 2014

If you're a newbie investor or trader, you might be wandering whether to buy, hold,or sell Double Dragon Shares. Some analysts points to sell DD due to valuations and stock continuous upward movement. But just today May 27, DD reached its 10 pesos mark.

While most of the stocks are in the red zone, DD is enjoying a run up. DD even reached a peak of 10.96 per share. Definitely, this is another joyful day for Double Dragon holders.

I'm clueless about the direction of Double Dragon share price.
However, one thing is for sure, as the stock price goes higher and higher, the risks goes higher and higher also.

Friday, May 23, 2014

Aside from regular and special cash dividends, DMCI Holdings DMC offers 400% stock dividend.
A 400% stock dividend means you'll have 4 common shares for every 1 common share.

400% ??? No type error? Sounds good but from my experience each stock value reduces at a similar rate.

For example, if you have 100 shares of company 'Y' priced at 100 pesos each then after the stock dividend payout you'll have 400 shares. However, you'll notice that your 400 shares are now priced at a lower price...lets say 25pesos. The rate of decrease is approximately the same with the increase of the number of shares. So previously, you have 100 shares x 100 pesos = 10,000 Pesos and after 400 shares x 25 pesos = 10, 000 pesos. This means you still have the same total amount before and after the stock dividend payment.

As of May 23, the ex date is still TBA. Will DMC move up again when these dates are announced?

Hmm Why is there a need for giving stock dividend? My googling hints that it can increase its authorized capital stock.

DD
Double Dragon DD moves up 7.65% and this May 23 it is now priced at 9.85. Cheers to DD holders again! Will DD reach the 10 pesos mark next week?

COAL
COAL recovers some of its losses yesterday. COAL was up by 3.50% this May 23

BDO
BDO stock price increase is hard to miss because it has an extreme 2.87% increase among the top traded stocks. Is this increase related to the story that BDO bank scouts for more acquisitions?

PSE
Overall, the PSEi didn't move much today. The index is almost unchanged with its -.28% movement.

MA
I saw a stock rights offering (1 Right Share for every 3.56 common shares of MA/MAB.. This is priced at 0.012 per share) of Manila Mining (MA) and today I also found a 5 percent decrease with this stock. Is this the normal reaction when there is stocks rights offering?
I dont know and I don't know why companies are offering stock rights offering. I'll search for the reason next week.

Thursday, May 22, 2014

How to invest in Philippine stock market ?
If you are looking for other ways to earn income, you can give stock investing a try.
But first, please note that this type of investment is not for all. Basically, your risk tolerance will determine if buying and selling of stocks is for you.

Stock investing is riskier than bank deposits or time deposits in the Philippines but stock investing
is also more rewarding.

To start, i suggest you open a free trial on famous brokers of the Philippines. Most of online brokers offers a DEMO. A Demo account means you won't lose real money.

Learn to read more business news and stock market books. Learning resources for stocks are widely available on the internet. There are too many sites to choose from but one of my favorite is Investopedia.

Next is too attend FREE seminars. Most online brokers are also offering free tutorial. They conduct Technical analysis and Fundamental analysis. If you are looking for other topics or wants to attend a more deeper analysis, you can attend seminars for a fee.

Another tip that I can give is to ask for help from others who are experience.
Its good that you are reading this article but its also good if you will talk personally to someone with experience. You can see their excitement or disappoints with them - the two emotions that you will feel over and over again for

If you are still afraid, you can try opening an account with the minimum amount required. You can open an account for as low as 5,000 pesos. Furthermore, this 5000 pesos will be available to your fund and can be used for trading.

Deposit and buy more stocks once you get the hang of buying and selling stocks.
Take note of the fees, commission, taxes and other charges that are being deducted to you when you buy or sell stocks.

Always check you emotion. Don't be greedy. Don't be afraid. Greed and Fear will certainly affect your decision
Define your buying strategy and exit strategy. What do you expect from stocks? Do you want your stocks to rise more than 50% before selling. Is that realistic?

PSE
1.01% increase is not bad for the index after a bif decline yesterday. Initially, I thought that the market will just move sideways. Its Friday tomorrow, last day of trading for the week. Lets see what will the market do.

Tuesday, May 20, 2014

COAL is more than 35% up last May 20, 2014. Any news regarding this? There was a disclosure in PSE site. Is that the explanation of the price movement?

Aside from COAL, LTG stock performance is also noticeable. I checked the daily graph and its red for several days. Is it good time to buy stocks of LTG now or the price will continue to fall ?

Let's see what will happen tomorrow.

Last May 21, there are no extravagant increase of COAL. It fell down by 3.75%.
LTG also fell by abother 1.91%.

Moreover, the PSE index is down by 1.75%. URC, MBT , SM, SMPH were down bymore than 3% in just one day. Double Dragon is also in red. DD fell down 4.77%.

RSI of LTG is now only 19.15%. Is LTG oversold and good to buy now?

Other observations from several days
BPI travalled far from around 96 to 87.80
EEI tuns to red again.
JFC, After 5 days of solid gains . JFC is down by 2.43%
RSI of SCC slowly creeps down
GLO had one long red candle
MER from 292 to 262

I'm starting to believe that there is no such thing as passive income. Everything requires effort but there are things that require less. I think what people say passive income is not totally passive. They just refer to those work with the least amount of effort. Rental income for example. You or someone needs to work first before you earn money! This is what I observe from multi level marketing and earning online by blogging. However, as time passes by, when you already build you're 'pyramid' or levels or created a decent blog, you'll get to earn more with lesser work. A short quote to understand this is build now, earn more later. Build something now and reaps it benefit later.

But wait, I just knew that I had the wrong expectation for passive income. Passive income is an income received with less work. No one said that no work is required! I'll still give rental income, blogging income and income from stocks/mutual fund their chances. Besides, I'm a believer that nothing is lost if you love what you do.

Its not just money. Everything becomes passive when you love what you do!